After slaying the zombie in the back hills, Wang Xuan heads to Dukou Town. The townspeople are terrified because a red-clad female ghost has been taking lives. All the victims are men, each marked with a red stain on his neck. Wang Xuan waits at the ferry crossing and intercepts the vengeful spirit. He learns that the ghost is Miss Su, who worked at an embroidery shop. After a wealthy merchant's son broke off their engagement, she drowned herself in a river in her despair and became a vengeful spirit. Wang Xuan uses Taoist magic to calm her rage and persuade her to come to her senses, then helps her receive the funeral clothes and burial rites due to a principal wife, allowing her to let go of her fixation. As he prepares to leave, his compass begins to stir, and the dark aura to the southwest grows stronger. Gripping his peachwood sword, he continues on his path to vanquish demons.
